Use the following information: Debt: $79,000,000 book value outstanding. The debt is trading at 94% of book value. The yield to maturity is 7%. Equity: 2,900,000 shares selling at $46 per share. Assume the expected rate of return on Federateds stock is 16%. Taxes: Federateds marginal tax rate is Tc = 0.35. Suppose Federated Junkyards decides to move to a more conservative debt policy. A year later its debt ratio is down to 14.00% (D/V = 0.1400). The interest rate has dropped to 6.6%. The companys business risk, opportunity cost of capital, and tax rate have not changed. Use the three-step procedure to calculate Federateds WACC under these new assumptions. (Do not round intermediate calculations. Round your answer to the nearest whole percent.) What is the weighted-average cost of capital?